On May 12th, Bitcoin‘s price briefly fell below the significant monthly support range of $27,000-$26,786. However, by day’s end, the daily candle surged and closed above that support level, indicating that buyers are still defending it. Consequently, the coin’s price has risen 2.5% in the past three days, currently sitting at $27,456. The question remains – is this reversal enough to resume a recovery rally for Bitcoin?
A breakout above the resistance trendline may indeed help buyers kickstart the recovery. Furthermore, the 100-day EMA nearing the $27,000 mark could add to the support strength at this level. Intriguingly, Bitcoin’s intraday trading volume has surged to $13.3 billion, a significant 44% increase.
Over the past two months, Bitcoin has seen its fourth reversal from the $27,000 – $26,786 support level. This activity suggests traders are aggressively accumulating at this level, hinting at a potential upswing in the coming week that could reach the overhead resistance.
This potential rally might surge Bitcoin’s price by 5% and reach the overhead resistance trendline (red trendline). The trendline has guided the ongoing correction, providing sellers with selling opportunities during bullish rallies. Thus, it is crucial for buyers to break out above this trendline to resume the price recovery phase.
However, if Bitcoin shows a reversal at the falling trendline, holders could brace themselves for a longer correction phase. On the technical indicator front, a potential bearish crossover between the 20- and 50-day EMA may put extra selling pressure on the Bitcoin price, while an uptick in the MACD (blue) and signal (orange) line may only offer a temporary recovery given their positions below the midline, reflecting an underlying bearish trend.
As for Bitcoin’s intraday levels, the spot rate is at $27,465, with a bullish trend and medium volatility. Resistance levels are at $30,000 and $31,200, while support levels are at $27,000 and $25,200.
Despite the apparent short-term bullish recovery, Bitcoin’s future remains uncertain, and investors should approach with caution. The content presented offers personal opinions and is subject to market conditions. Before investing in cryptocurrencies, always conduct thorough market research, as the author and the publication hold no responsibility for any personal financial loss.
Source: Coingape
